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Chabot Wallpaper Analysis

Chabot Wallpaper Analysis. Cavanaugh, Dunn, Powell. Agenda. Introduction Manufacturing Transportation/Service Inventory Summary. Major Problems. Long production runs Poor service from contracted carrier High inventory levels. Streamline Manufacturing Process.

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Chabot Wallpaper Analysis

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  1. Chabot Wallpaper Analysis Cavanaugh, Dunn, Powell

  2. Agenda • Introduction • Manufacturing • Transportation/Service • Inventory • Summary

  3. Major Problems • Long production runs • Poor service from contracted carrier • High inventory levels

  4. Streamline Manufacturing Process • Postponement at the Tennessee manufacturing plant • Hold inventory earlier in the supply chain • Work in Process vs. Finished Goods • Helps to create a more responsive supply chain

  5. Current Manufacturing Process

  6. Proposed Manufacturing Process

  7. How To Improve Lead Time 25.5 days 7 days

  8. How To Improve Transportation • FOB Destination/Freight Prepaid • Change freight terms to FOB Origin/Freight Collect if customer’s transportation is cheaper • Build relationships with more than one carrier • Contingency planning

  9. Inventory Solutions • ABC Analysis on item turnover rates • Reduce case sizes for B and C items • More responsive supply chain enables us to ship more A items to keep up with demand

  10. ABC Analysis

  11. Tradeoffs • As case sizes decrease… • Packaging and handling costs increase • Customer service levels increase • Obsolescence costs decrease • Inventory costs increase for Chabot, but decrease for retailers

  12. Summary • Postponement is key to increasing customer service • Lead times will decrease • Improve carrier strategy to be more responsive to customer needs • Reduced inventory levels lead to better customer service • Customer service is at the heart of everything you do

  13. Questions

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